Benzinga | Jul 28, 2021 11:57AM EDT

Extreme Networks Beats On Q4 Earnings, Expands Margins, Issues Robust Q1 Outlook

* Extreme Networks Inc (NASDAQ:EXTR) reported fourth-quarter FY21 revenue growth of 29% year-on-year to $278.1 million, beating the analyst consensus of $263.9 million.

* Bookings grew 36% Y/Y driven by enterprise solutions demand. Cloud new subscription bookings jumped 111% Y/Y.

* Revenue from Product rose 38% Y/Y to $195.8 million, and Service and subscription increased 11% Y/Y to $82.3 million.

* The non-GAAP gross margin expanded 110 basis points to 60.5%, and the non-GAAP operating margin expanded 820 basis points to 13.4%.

* Non-GAAP EPS of $0.19 beat the analyst consensus of $0.17.

* Extreme Networks generated $57 million in operating cash flow and held $246.9 million in operating cash flow. It had a debt of $346.8 million.

* Outlook: The company sees Q1 FY22 revenue of $250 million -$265 million against the analyst consensus of $255.8 million.

* It sees non-GAAP EPS of $0.13-$0.20 compared to the analyst consensus of $0.15.

* Price action: EXTR shares traded higher by 0.66% at $9.86 on the last check Wednesday.